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Board approves moving maturing CD into 12‑month CBN account
Summary
The board voted to reinvest a maturing certificate of deposit with a July 15 maturity and a reported balance of $1,081,980.26 into a 12‑month account at CBN after members said locking yields was preferable to shorter terms amid anticipated rate cuts.
The Fayetteville Board of Aldermen voted to reinvest a maturing certificate of deposit into a 12‑month account at CBN.
The CD, which the board said will mature Sept. 15 and has a balance of $1,081,980.26, was reviewed during the meeting. Staff presented a chart of current offers across several terms, including 6, 7, 12 and 18 months, and relayed that local banks reported possible rate cuts later in the year. Alderman Keenan moved to place the funds in a 12‑month CBN account; Alderman Alber seconded, and the motion carried.
Board members said a longer term would reduce the administrative burden of frequent rollovers and could protect the city against a forecasted rate decline. One member noted that banks had told staff a policy meeting or other events could drive rate reductions in coming months.
Members also discussed the city’s existing CD distribution and bank diversification; the board said the three local CDs will be held at separate local banks after this transaction. The move was recorded by voice roll call, with affirmative responses entered for "Mister Alder," "Mister Keenan," "Mister Faulkner" and "Miss Small." The board did not record individual dollar-by-dollar allocations beyond the reported balance.
The reinvestment is intended to keep city funds at local institutions and lock a rate for one year. There was no additional formal direction to staff beyond executing the reinvestment and noting current bank holdings.
